DGAA bLAWg

Home Sale Contingencies in Real Estate Contracts

Web Admin - Thursday, April 10, 2014

illinois real estate contingencies lawyerBuying a new home is a complicated task that requires a lot of pieces to fall into place in just the right way. For many people, one of these pieces is the ability to sell their current home. Often, people need to sell their old home first to make sure they have enough cash on hand to afford the new one. Of course, sometimes that is not feasible, and people will want to put an offer down on a new house before they have managed to sell their old one. When this happens, people can use a “home sale contingency” clause in their contract to purchase the new home. In short, a home sale contingency clause voids the contract for the sale of the new house in the event that the buyer is unable to sell their old one.

Types of Home Sale Contingencies

There are two broad types of home sale contingencies that lawyers can build into a contract: a “sale and closing contingency” and a “closing contingency.” The sale and closing contingency is used in the event that the buyer has yet to find a prospective buyer for their own home. Conversely, buyers use closing contingencies when they have a prospective buyer who has made an offer for their home, but the sale has not yet closed. In this instance, the contingency acts as an insurance policy against the sale of the buyer’s home falling through at the last minute. While these two types of clauses function in largely the same way, both of them voiding the sale of the new house if the old one does not sell, the sale and closing contingencies are more likely to include a “kick out” clause.

Kick out clauses are a right of first refusal. They allow the seller to keep searching for other buyers for the house. In the event that one of these other buyers makes an offer, then the seller must notify the first buyer. The first buyer then has some period of time to sell their house or else the seller is allowed to make the sale to the new buyer instead.

Factors to Consider When Using a Home Sale Contingency

Buyers should consider two things when deciding whether to ask for a home sale contingency: the effect it will have on the new home’s price and the other costs of purchasing a house. For the first point, home sale contingency clauses will likely drive the price of the new home up. The buyer is asking the seller to take the risk that the buyer’s old home will not sell, and the seller will likely want compensation for bearing that risk.

For the second point, buyers can still end up sinking other costs into the attempted purchase of the new home. They can end up paying for things like home inspections, appraisal fees, and the like, even before they have sold their old house. In the event that the buyer fails to sell their home, then they have wasted any money spent on such things.

If you are in the market for a new house, find an Illinois real estate attorney to help ensure that you receive strong, fair contracts. We serve towns all across northwest Chicago including Palatine, South Barrington, and Mount Prospect.

About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.


Recent Posts


Tags

Arlington Heights Traffic Lawyer Illinois employment law attorney first degree murder Illinois pedestrian accident attorney Rolling Meadows real estate attorney insurance adjusters traumatic brain injury Illinois LLC creation social media after death Illinois business law atorneys Illinois estate planning law firm Palatine trusts lawyer Palatine traffic accidents traffic tickets loopholes denied insurance claim involuntary manslaughter workers comp Rolling Meadows insurance attorney LLCs car accident FSLA new real estate form unpaid assessment federal crimes personal injury law firm Inverness accident lawyer unpaid overtime Palatine estate planning lawyer rent to own real estate contracts Illinois bicycle safety preventable medical errors attorney fees Arlington Heights wills and trusts lawyer murder charges drunk driving statistics Schaumburg car accident attorney probate college kids whistleblower protections Illinois home inspection boating DUI consent to a search Buffalo Grove corporate attorney Riverwoods estate planning lawyer pain and suffering wills and trusts motorcycle accident lawyer estate planning for college students boating accidents deadly crashes drunk driving liens Arlington Heights wills and trusts lawyers overtime violations caretaker rights digital media accounts, estate planning, Arlington Heights estate planning attorney, TBI Palatine workers compensation lawyer CAM employees Illinois Wage Payment and Collection Act IRA benefits drug possession estate planning lawyer commercial real estate federal regulations for LLCs Illinois registered agent Schaumburg probate attorney FMLA Des Plaines personal injury lawyers institutional trustee underage DUI Crystal Lake business law attorneys Crystal Lake personal injury attorney Crystal Lake tax lawyer business litigation DUI attorney Legal Info Crystal Lake pet attorney Home Sale Contingencies Long Grove real estate lawyer Illinois workplace lawyer cell phone tower data insurance dispute cell phone drug crimes Palatine real estate lawyer Barrington workers compensation attorney Illinois Sales Representative Act Kenilworth estate planning attorney in terrorem provision personal injury claims Barrington injury attorney Crystal Lake accident attorney Palatine traffic lawyer Buffalo Grove real estate attorney trench injuries deed transfer Illinois employment laws real estate contract preventing accidents Arlington Heights traffic attorney condo association Deer Park traffic accident attorney Chicago insurance law firm Buffalo Grove law firm rumble strips DGAA Buffalo Grove personal injury attorney life insurance policy right to work Palatine civil litigation lawyer Crystal Lake injury attorney Deer Park real estate law firm Long Grove estate planning estate planning attorney Palatine corporate attorney Fourth of July Des Plaines DUI attorney Des Plaines collections attorney pedestrian accident defective products overtime pay wrongful termination trauma after an accident Mount Prospect elder law attorney Rolling Meadows estate planning attorney commercial leasing Chicago biking tips employee rights probate claims process creditors Deer Park DUI lawyer sexual harassment medication errors head on collisions Arlington Heights personal injury attorney Des Plaines motorcycle accident attorney Buffalo Grove car accident lawyer hit and run accident Mount Prospect real estate lawyer Transfer on Death Instrument Illinois insurance claim dispute lawyers pedestrian-automobile accident Chicago trucking accident attorney Barrington real estate lawyer corporate law natural gas Illinois corporate lawyer wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace operating agreements wrongful death estate plan South Barrington real estate attorney meal breaks speeding bicycle dooring accidents life insurance lawyer traffic crimes Barrington litigation attorney startup company life insurance claims filing a medical malpractice claim rollover accidents jet ski accidents liability bicycle accidents gift taxes Inverness elder law lawyer ObamaCare car accident lawyer digital information Illinois jet ski accident lawyer underinsured motorist motorcycle accident Des Plaines Traffic Lawyer insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys trust payments criminal defense criminal law trusts Des Plaines claims law firm Crystal Lake insurance lawyer insurance claim dispute Arlington Heights TBI attorney BAIID Chicago attorney Rolling Meadows employment law attorneys Illinois employment law Des Plaines insurance attorney estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, Kenilworth estate planning lawyer Barrington attorney Rolling Meadows personal injury lawyers estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers commercial leases Illinois insurance dispute lawyers Schaumburg wrongful death attorney automated cars Buffalo Grove traffic lawyers insurance negligence Chicago employment lawyer Illinois elder law attorney Arlington Heights injury attorney medical research Retaliatory Discharge insurance denials defective products lawyer Jay Andrew criminal drug crimes lawyer insurance claim irrevocable trust Illinois Human Rights Act Palatine injury attorney Arlington Heights insurance attorney Deer Park motorcycle accident lawyer marijuana license revocation blood alcohol content pedestrian accidents Deer Park accident attorney nursing home negligence truck collisions expungement Rolling Meadows criminal lawyer Rolling Meadows litigation lawyer living trust Des Plaines tax law firm probate fees Crystal lake insurance dispute attorney Schaumburg employment attorney Illinois personal injury wills Exclusions construction contracts Chicago estate planning lawyer fiduciary rule Chicago will attorney, social media platforms, Illinois estate planning lawyer, controlled substance jet ski Inverness personal injury attorney changes to mortgage law pizza emoji hiring employees Crystal Lake traffic lawyer Long Grove estate planning attorney living wills construction accidents natural gas explosion severance agreements Rolling Meadows DUI lawyer uninsured motorist mass shooting ken apicella underfunded trust Palatine drug lawyer Forcible Entry personal injury insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys Chicago employment attorney internet Des Plaines Arlington Heights real estate lawyer DUI Rolling Meadows car accident lawyers Illinois Workers’ Compensation Commission Illinois DUI attorney IRS Crystal Lake car accident lawyer owner responsibility Rolling Meadows drug defense attorney GM ignition switches texting and driving South Barrington real estate lawyer Des Plaines real estate lawyer liability claims Inverness corporate attorney traffic laws real estate leasing Palatine Attorney Chicago corporate attorney gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys Arlington Heights pedestrian accidents Schaumburg corporate attorney Palatine employment lawyer caregiver Inverness injury lawyer drugs Illinois insurance disputes estate tax workers compensation benefits Inverness real estate attorney income distribution deducation loss of consortium healthcare hands free device digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers trustee swimming pools employment lawyer Deer Park workers compensation lawyer Schaumburg medical malpractice lawyer problem employees Schaumburg employment law attorneys PTSD Barrington drug crime attorney traumatic brain injuries Arlington Heights lawyer Illinois traffic attorney home inspection lawyer employee discrimination Food and Drug Administration's Food Safety Modernization Act breathalyzer test special needs trust fault based insurance Liquor Control Act Palatine civil attorney power of attorney real estate attorneys Attorney Ken Apicella Barrington employment law attorney probate claims Inverness DUI lawyer sexual images installment contracts traffic offenses Schaumburg estate planning attorney Barrington estate planning attorney car crash injuries Crystal Lake pedestrian accident lawyer Illinois medical malpractice attorney advance healthcare directive sole proprietorship Illinois employee rights attorney. Barrington Traffic Lawyer Des Plaines real estate attorney Family Medical Leave Act mortgage Schaumburg insurance lawyers surgical mistakes unfunded trust estate planning trusts trucking accident lawyers marijuana crimes attorney Whistleblower Claims employment attorney premises liability employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys medical malpractice compensation comp time insurance agents foreclosure crossover accidents Do Not Resuscitate Barrington personal injury attorney Illinois workers compensation lawyer personal injury claim medical marijuana Policy Cancellation Illinois insurance attorney Barrington business law firm Schaumburg personal injury lawyer Chicago will attorney real estate digital evidence Chicago traffic lawyer slip and fall fiduciary rule delay Illinois workplace discrimination attorney unauthorized overtime Palatine probate lawyer Barrington boating accident attorney Colin H. Gilbert Schaumburg personal injury attorney comparative negligence real estate attorney car accidents medical malpractice landlord tenant law Crystal Lake estate planning lawyer living trust vs will insurance claim delay elder abuse capital gains tax dynasty trusts Illinois medical malpractice lawyers Des Plaines injury law firm Palatine punch death Illinois rollover accident lawyers dram shop law license Illinois collections attorney Arlington Heights car crash attorneys Arlington Heights wills and trusts attorneys Illinois personal injury lawyer texting while driving Illinois lawyer Rolling Meadows insurance dispute lawyers, insurance dispute Palatine criminal defense lawyer personal injury accidents Illinois Transfer on Death Instrument Crystal Lake will lawyer distracted driving accidents employee misclassification car crash estate planning Illinois personal injury attorney no contest clauses ACA probate lawyer DMV Illinois boating accident lawyer Illinois trucking safety spinal cord injuries Palatine business attorney Rolling Meadows corporate lawyer real estate lawyer Arlington Heights car accident lawyer accidental death benefits Rolling Meadows boating crash lawyer Schaumburg elder law lawyer Illinois speeding lawyer Chicago estate planning car crashes Employment Discrimination Law Palatine insurance lawyer employment law, Illinois employment laws Crystal Lake employment lawyer Barrington civil litigation attorney Illinois traffic ticket lawyer Illinois mortgages dealing with problem employees living trust benefits denied insurance claims Illinois traffic laws drug crime investment property Mount Prospect wills and trusts lawyers Illinois medical malpractice case School Visitation Rights Act auto accidents Crystal Lake employment law attorney Chicago insurance claim attorneys revenge porn Rolling Meadows probate lawyer Arlington Heights Attorney pay when paid contract low-ball insurance settlement Buffalo Grove injury lawyer wage theft Illinois traffic accident lawyer Illinois employment law attorneys Illinois wills and trusts attorneys insurance claims Illinois living will product liability Landlord Tenant Ordinance Arlington Heights employment law attorneys Illinois workers compensation attorney Schaumburg license reinstatement dog bites Crystal Lake traffic attorney personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys subcontractor Barrington criminal defense lawyer insurance claim denials rest breaks modern family estate planning landlord Arlington Heights estate planning attorney distracted driving accident victims construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation Rolling Meadows Traffic Lawyer Buffalo Grove criminal defense lawyer paid sick leave Long Grove estate planning attorneys Palatine law firm Schaumburg estate planning lawyer blended families Illinois employment law firm traffic accidents Illinois defective products attorney Illinois construction accident attorney Buffalo Grove insurance claim dispute lawyers Self-Directed IRA Accounts Arlington Heights criminal lawyer POA appealing an insurance claim Deer Park employment law attorney murder defense homestead rights car accident lawyers Arlington Heights medical malpractice lawyer Rolling Meadows personal injury lawyer DUI penalities Arlington Heights trucking lawyer Mt Prospect Attorney Inverness probate lawyer Deer Park personal injury lawyer health insurance dispute foreclosed rental property Fair Labor Standards Act personal injury attorney job lawyers Crystal Lake employment attorney vacation home fines probate process Barrington estate planning lawyer Illinois probate lawyer Schaumburg personal injury lawyers Buffalo Grove traffic attorney icy parking lots Rolling Meadows marijuana attorney pet bites Illinois employment attorneys Crystal Lake personal injury lawyer digital assets workers compensation Illinois civil litigation lawyer Schaumburg criminal attorney senior citizens child safety BUI employment law privacy laws Illinois wills and trusts Des Plaines civil attorney Buffalo Grove probate lawyer driving Buffalo Grove medical malpractice lawyers Des Plaines accident attorney products liability Illinois medical malpractice claim Illinois personal injury lawyers Affordable Care Act civil litigation attorney Illinois pet lawyer insurance claim dispute attorney Crystal Lake bike accident lawyer employment contract Barrington employment attorney real estate closing Schaumburg real estate lawyer license suspension murder car collision Rolling Meadows traffic law firm Illinois Probate Act of 1975 workplace sexual harassment llinois Real Estate Lawyers Association Illinois wrongful termination lawyer minimum wage anesthesia errors Arlington Heights wills and trusts attorney Inverness insurance attorney fatal car accidents Rolling Meadows insurance dispute lawyers insurance claim denial Barrington medical malpractice lawyers DUI defense power of attorney for healthcare field sobriety test Crystal Lake medical malpractice lawyer Illinois criminal defense attorney civil rights violation employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, bad faith insurance claims Colin Gilbert Crystal Lake civil litigation lawyer Rolling Meadows employment law attorney Illinois injury lawyer Rolling Meadows traffic attorney Des Plaines personal injury attorney Arlington Heights personal injury lawyer Schaumburg injury lawyer tax attorney Barrington Illinois estate planning lawyer Illinois elder law Arlington Heights tax lawyer Inverness civil lawyer rollover car crashes traffic violations golf accidents eluding a police officer Illinois insurance claim attorney Rolling Meadows employment attorney pedestrian injuries, pedestrian fatality Illinois employment lawyer Chicago lawyer Rolling Meadows personal injury attorney life insurance Deer Park traffic lawyer medical malpractice claims reckless homicide Schaumburg estate attorney Crystal Lake car accident attorney Crystal Lake criminal defense attorney healthcare claims Rolling Meadows DNR Des Plaines drug crimes lawyer Crystal Lake medical malpractice law firm Illinois Smoke Detector Act Home Remodeling Repair Act traffic violations defense Long Grove wills and trusts attorneys Arlington Heights employment attorney Illinois traffic attorneys Palatine employment attorney Illinois trusts attorney agent Illinois estate planning BAC Palatine elder law attorney Super Mario estate attorney Schaumburg traffic lawyer Illinois real estate lawyer pet law Class A misdemeanor food poisoning condo Illinois insurance claims lawyers work unions Deer Park medical malpractice attorney Illinois motorcycle accident lawyer Arlington Heights accident attorney Des Plaines criminal attorney Illinois real estate Illinois car accident attorney Des Plaines pet law attorney forming a corporation in Illinois trucking accidents Illinois small business Illinois driving without license boating under the influence Illinois law manufacturing Illinois insurance lawyer IRA trust transfer bike accident Schaumburg construction accident lawyer slip and fall accidents disability benefits Barrington criminal lawyer Rolling Meadows tax attorney Inverness traffic law firm IRELA insurance denial appeals Federal Food Drug and Cosmetic Act pregnant women financial advisors Illinois job attorney denial of life insurance Crystal Lake medical malpractice attorneys Rolling Meadows insurance lawyer guardianship attorney Inverness real estate lawyer insurance disputes Palatine construction attorney real estate zoning residential real estate Schaumburg civil litigation attorney Inverness estate planning lawyer Schaumburg drug defense lawyer insurance dispute attorney privacy spinal cord injury holiday statistics Des Plaines personal injury lawyer Rolling Meadows accident lawyer Des Plaines medical malpractice attorney insurance attorney independent contractor Schaumburg criminal law attorney Barrington employment law firm breach of contract Illinois attorney civil litigation Illinois will lawyer Buffalo Grove employment lawyer Crystal Lake law firm clemency Buffalo Grove personal injury lawyer Des Plaines drug lawyer Chicago car accident lawyer Rolling Meadows business lawyer Illinois estate planning attorney Illinois tax attorney suspended license personal injury lawyer Palatine employment law lawyer Illinois red light cameras Joliet general practice lawyers taxes Palatine personal injury lawyer Deer Park criminal attorney contracts Rolling Meadows Attorney Palatine corporate law attorneys cell phone accidents compensatory time traffic deaths Rolling Meadows medical malpractice lawyers insurance agent negligence Long Grove real estate attorney brain injury Illinois business lawyer Barrington personal injury lawyer Rolling Meadows criminal attorney vacation home medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers criminal record back injuries small business Thanksgiving Detainer Actions Illinois insurance claim dispute lawyer Kenilworth estate planning attorneys Schaumburg Attorney

Archive